Smith & Nephew, a leading U.K. medical-technology company, has announced an upward revision of its revenue growth guidance for 2023 following better-than-expected results in the second quarter. The company reported revenue of $1.38 billion for the three-month period ending June 30, surpassing last year’s figure of $1.29 billion and exceeding the consensus estimate of $1.36 billion compiled by the company.
The underlying growth for the quarter stood at an impressive 7.8%, outperforming the expected consensus of 5.9%. In the first half of the year, revenue reached $2.73 billion, with underlying growth of 7.3%, compared to the consensus estimate of $2.72 billion and 6.4% respectively.
However, trading profit for the six-month period declined to $417 million from $440 million, in line with anticipated seasonality and higher input inflation. The trading profit margin stood at 15.3%, but the company expects a significant improvement in the second half.
As a result of its strong performance, Smith & Nephew has raised its underlying revenue growth projection for the year to a range of 6.0% to 7.0%, up from the previous estimate of 5.0% to 6.0%. The company has maintained its target trading profit margin of at least 17.5%.
In other news, the current Chief Finance Officer, Anne-Francoise Nesmes, is set to step down during the second quarter of 2024. The company has initiated an external search for her successor.
Smith & Nephew remains committed to delivering value to its shareholders and has declared a stable interim dividend of 14.4 cents per share.
Stay Updated on Smith & Nephew’s Progress
To stay informed about Smith & Nephew’s latest developments and achievements, keep an eye out for future updates.